Which of the following costs do not automatically increase or decrease with the level of activity within the relevant range?
A)Variable
B)Fixed
C)Direct materials
D)Direct labour

Question

Quizplus · Accepted Answer

Fixed costs remain constant within the relevant range, regardless of the volume of activity. Variable costs, on the other hand, increase or decrease based on the level of activity. Direct materials and direct labor costs are examples of variable costs because they increase or decrease based on the level of production.

Which of the Following Costs Do Not Automatically Increase or Decrease